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Collections = Beginning receivables + 1/2 X Sales Ending receivables = Beginning receivables + Sales - Collections = 1/2 X Sales

Collections = Beginning receivables + 1/2 X Sales Ending receivables = Beginning receivables + Sales - Collections = 1/2 X Sales

See the Finance Tools section of

http://business.lycos.com for several useful templates including a . cash flow budget.

choose quarters for convenience and also because a quarter is a common short-term business planning period. (Note that, throughout this example, all figures are in millions of dollars.)

All of Fun Toys's cash inflows come from the sale of toys. Cash budgeting for Fun Toys must therefore start with a sales forecast for the coming year, by quarter:

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